What is support and Resistance in Trading??
It is a part of Technical Analysis. Most of the trader enter in the trade on the behalf of support and resistance. It is most basic thing in technical analysis and it is also known as demand and supply zone.
Support refers to demand and resistance refers to supply. Support is that place where trend of market change if market going down and its take support so may be market goes up because support is that place where buyers are active.
When price is starts falling from particular price so it's known as resistance. Resistance is that place where all sellers are active.
Tools that help in draw support and resistance.
Most of the trader draw support and resistance by the help of horizontal lines it is a straight line that touches body of candles on charts and the most famous way to draw support and resistance is using rectangle. It is famous because rectangle create zones. Like resistance zone, support zone.
How to draw support and resistance zones on charts??
Let's learn how to draw support and resistance zones. First of all you have to find where price start falling down so it will be resistance you have to mark that zone from horizontal lines or rectangle that is your resistance. Then opposite thing in support find that moment where price starts going upward.
